Department of Trade and Industry (DTI) Secretary Gregory L. Domingo underscores the contribution of the business process outsourcing (BPO) sector to the Philippine economy in his keynote speech at the 3rd International Outsourcing Summit, which was held at the Sofitel, Pasay City.
In his speech, Sec. Domingo cited the role of the business and outsourcing industry in the economic development of the country.
“The contribution of the (BPO) industry cannot be understated. It has provided a very big support to the economic environment of the Philippines over the past decade…your targeted US$11B dollars of revenues this year approximates about 5% of GDP of this country,” Secretary Domingo said. He also congratulated the major stakeholders in the industry for the success it has achieved, from being a nascent sector a decade ago to a 600,000 people-strong industry at present.
Even after a decade of growth and success, the BPO industry still confronts a major challenge which is the inadequate supply of skilled people. Secretary Doming said that “the industry has been able to cope with the problem, although the scale is much different.” At present, the BPO industry employs over and 600,000 people and needs an additional 100,000 skilled people for the coming years. One of the causes for the insufficient supply of skilled human resources is the lack of quality training for graduates.
In light of these challenges, the government is already focusing on the issue. Secretary Domingo pointed out that the Department of Education (DepEd) and Commission on Higher Education (CHED) are working on the revision of the education curriculum, and the Technological Skill and Development Authority(TESDA) has earmarked a big part of its budget to support training efforts of the BPO industry.
Secretary Domingo presented a short term solution to improve the quality of the HR supply by offering free online training courses and distributing free copies of training module CDs to the people.
Aside from tackling the HR supply issue, Secretary Domingo mentioned the government’s initiatives to support the BPO industry, such as the signing into law of the Republic Act 10151, an act on employment of night workers which also allows women to work at nightshift, and other legislations such as the Data Protection and Privacy bill. The DTI continues to support the industry through fiscal incentives and income tax holidays.
As he ended his message, Secretary Domingo recognized the role of the young professionals trained by the industry and their potential to become entrepreneurs someday. “I bet you, a lot of these people if and when they leave your industry will become entrepreneurs… a lot of them will have that confidence to run big corporations and this is really what this country needs.” he quipped.
According to Business Processing Association of the Philippines (BPAP), the Philippines became the top destination for voice services in 2010 and is one of the potential destinations for non-voice services in the world.
The 3rd International Outsourcing summit is a high level conference organized by the Business Processing Association of the Philippines to discuss the future of the global IT-BPO industry, particularly the development of non-voice and complex I.T. services. Over 400 delegates and 80 speakers from countries across the globe attended the event.